SKF to build new factory in Xinchang, invest in automation in Bari

STOCKHOLM, June 19 (Reuters) - Bearings maker SKF said it plans to spend around 450 million Swedish crowns ($47 million) in its deep groove ball bearing (DGBB) manufacturing and would take 140 million in restructuring costs due to an automation investment in Italy.

The Swedish company said that changes included shifting some production from Bari, Italy to Asia, while DGBB production in China would be consolidated into a new factory in Xinchang.

“Through this investment we will increase our competitiveness in Asia,” said Patrick Tong, SKF’s head of industrial sales in Asia in a statement on Wednesday.

SKF also said it would set up an automated production channel at its Bari plant, expected to be completed during the second half of 2020. ($1 = 9.5407 Swedish crowns) (Reporting by Johannes Hellstrom, editing by Louise Heavens)